* Saab still in talks with suppliers on payment
* Saab hopes to restart production on Aug. 9
* Swedish govt approves Saab real estate deal
* Swedish Automobile shares down 4.2 percent
(Adds Saab comment, updates share price)
By Simon Johnson and Mia Shanley
STOCKHOLM, July 7 Struggling Swedish carmaker
Saab said a production stop lasting for most of the past three
months would stretch into August, but it was close to a deal
with suppliers who have held back parts until it pays its debts.
In recent days, Saab, owned by Netherlands-based Swedish
Automobile , has secured 61 million euros in short-term
funding, but has yet to get parts flowing again so it can resume
"Saab Automobile continues its discussions with its
suppliers on materials supply and commercial terms and is close
to reaching agreements," Swedish Automobile said in a statement
"Given the fact that some of Saab Automobile's suppliers
require a longer lead time to resume adequate supplies and the
delay as a result of the summer shutdown period at many of Saab
Automobile's European suppliers, Saab Automobile plans to
restart production by Tuesday August 9," it said.
Swedish Automobile, whose shares were down 4.2 percent at
2.72 euros at 1343 GMT, had said on June 29 it hoped to restart
production within two weeks.
Saab hit trouble earlier this year after suppliers stopped
delivering to the firm due to unpaid bills. It then said it was
also unable to pay its workers' wages.
Since then, the company has found additional funds and
workers have received their salaries.
Part of the money comes from a property sale and leaseback
deal that got a final nod from the Swedish government earlier in
the day. .
The 255 million crown ($40 million) deal with a consortium
headed by Hemfosa Fastigeheter had already been approved by
Sweden's Debt Office and the European Investment Bank
All three had to give the go-ahead under the terms of a loan
agreement Saab has with the EIB.
Swedish Automobile said it was still in discussions with
several parties to obtain further short-term funding, including
completing the drawdown of the EIB loan facility.
In recent weeks, Saab has also inked deals to secure
Chinese car distributor Pangda and carmaker
Zhejiang Youngman Lotus Automobile Co. this week pledged to buy
a majority stake in the iconic Swedish brand. They also welcomed
interest from Russian financier Vladimir Antonov in taking a
These agreements still need to be approved by Chinese
regulatory authorities, by Sweden, former owner General Motors
and the European Investment Bank.
Saab's North American Chief, Tim Colbeck, said on Thursday
he expected authorities in China and Sweden would approve the
deals by September.
($1=6.353 Swedish Crown)
(Additional reporting by Deepa Seetharaman in Royal Oak,
Michigan, Anna Ringstrom in Stockholm and Amsterdam Newsroom;
Editing by Mike Nesbit and Will Waterman)